MCQ Questions on Entrepreneurship Development
1. Innovation can best be defined as_______.
A. the generation of new ideas.
B. the evolution of new ideas.
C. the opposite of creativity.
D. the successful exploitation of new ideas.
Answer-A
2. Which of these statements best describes the context for entrepreneurship?
A. Entrepreneurship takes place in small businesses.
B. Entrepreneurship takes place in large businesses.
C. Entrepreneurship takes place in a wide variety of contexts.
D. Entrepreneurship does not take place in social enterprises.
Answer-C
3. Entrepreneurship can best be described as _________.
A. a process that requires setting up a business.
B. taking a significant risk in a business context.
C. having a strong vision.
D. a process involving innovation, new products or services, and value creation.
Answer-D
4. Entrepreneurial development is the key to achieve all-round ---------------- through
acceleration of industrial and entrepreneurial activities.
A. economic development
B. increase in profits
C. shareholders value
D. business development
Answer-A
5. According to sociological approach, entrepreneurship
A. Process of sensitivity
B. Process of role performance
C. Process of economic change
D. All of these
Answer-B
6. Which of the following attitudes Is not generally associated with successful
entrepreneurship :
A. Competition and co-operation
B. Desire to influence others
C. Innovation and product improvement
D. Status quo in business
Answer-D
7. The function of entrepreneur are:
A. To imagine a business idea
B. To study project feasibility
C. To setup enterprise
D. All the above
Answer-D
8. Which of the following sentence is not a characteristic of entrepreneurship:
A. Risk taking
B. Innovation
C. Creative activity
D. Managerial training
Answer-D
9. An entrepreneur is:
A. Born
B. Made
C. Bom and made both
D. All of these
Answer-D
10. Which of the following sentence is inconsistent in the context of entrepreneur:
A. He is owner of the business
B. He is risk taker
C. He operates production activities
D. He searches out business opportunities
Answer-C
11. Maslow’s Hierarchy of needs theory is governed by the fact that:
A. People are universally motivated by needs
B. People are socially motivated by needs
C. People are politically motivated by needs
D. None of the above
Answer-C
12. In under developed countries, local mobile phone companies use the same technology used
by big companies to manufacture their products. Which of the following type of
Entrepreneurs is highlighted above:
A. Trading Entrepreneurs
B. Imitative Entrepreneurs
C. First generation Entrepreneurs
D. Innovative Entrepreneurs
Answer-B
13. All but which of the following is considered to be a myth associated with entrepreneurship?
A. Successful entrepreneurs are born not made
B. First ventures are always successful
C. All entrepreneurs must willingly invest significant sums of money
D. Successful entrepreneurs must have a break-through invention
E. An entrepreneur faces extraordinary business risks
Answer-D
14. Entrepreneurial culture and growth orientation consists of all of the following except:
A. Encouraging employees to generate ideas
B. Focusing on opportunities.
C. The desire to grow at a slow and controlled pace.
D. Being creative.
Answer-C
15. Intrapreneurship often takes the form of
A. A semi-autonomous group (e.g. an internal venture team), operating within the
overarching structure of the parent organization.
B. A spinout venture from a university to commercial a new invention.
C. A subsidiary of a large corporation developing a new product.
D. A semi-autonomous group operating outside the overarching structure of the parent
organization.
Answer-A
16. A ______________ is a professional money manager who makes risk investment from a
pool of equity capital to obtain a high rate of return on investments.
A. venture capitalist
B. entrepreneur
C. businessman
D. buyer
Answer-A
17. A business plan is important for all of the following reasons EXCEPT:
A. a business plan forces a firm's founders to systematically think through each aspect
of their new venture.
B. a business plan provides lenders and investors assurance that they will earn a decent
return.
C. a business plan provides an investor with something to react to.
D. a business plan is a selling document that enables a company to present itself to
potential suppliers and business partners.
Answer-B
18. A new venture's business plan is important because ______.
A. It helps to persuade others to commit funding to the venture.
B. Can help demonstrate the viability of the venture.
C. Provides a guide for business activities by defining objectives.
D. All the above.
Answer-C
19. To provide financial assistance to entrepreneurs the government has set up a number
of___________.
A. financial advisors.
B. financial intermediaries.
C. Industrial estates.
D. financial institutions.
Answer-D
20. _____________ can be defined as a specifically evolved work plan densed to achieve a
Specific objective within a specific period of time
A. Idea generation.
B. Opportunity Scanning.
C. Project.
D. Strategy
Answer-C
21. _____________ is used to accomplish the project economically in the minimum available
time with limited resources
A. Project Scheduling.
B. Network Analysis.
C. Budget Analysis.
D. Critical Planning
Answer-A
22. ______________ is a form of financing especially for funding high technology, high risk
and Perceived high reward projects
A. Fixed capital.
B. Current capital.
C. Seed capital.
D. Venture capital.
Answer-D
23. _____ is a favorable set of circumstances that creates a need for a new product, service, or
business.
A. A niche
B. A venture
C. A trend
D. An opportunity
Answer-D
24. Each of the following are ways to identify an opportunity EXCEPT:
A. observing trends.
B. solving a problem.
C. trying out alternative uses of existing products.
D. finding gaps in the marketplace.
Answer-C
25. Entrepreneurs can recognize problems and find ways to solve them through each of the
following EXCEPT:
A. recognizing problems in emerging trends.
B. identifying a currently available product or service and then building a business
around a better version.
C. framing a problem differently than it's been thought of before, and then proposing
an appropriate solution.
D. experiencing a problem in one's own life, and then realizing the solution represents
a business opportunity.
Answer-B
26. All of the following are characteristics shared by those who excel at recognizing
opportunities EXCEPT:
A. brainstorming.
B. prior experience.
C. entrepreneurial alertness.
D. social contacts and ties with others.
Answer-A
27. All of the following are suitable questions to ascertain Product/Service Desirability
EXCEPT:
A. Does it make sense?
B. Is the product or service financially feasible?
C. Is this a good time to introduce the product or service in the market?
D. Are there any fatal flaws in the product or service's basic design or concept?
Answer-B
28. All of the following are characteristics of attractive industries EXCEPT:
A. the industry is young.
B. the industry is fragmented.
C. the industry is crowded.
D. the industry has high operating margins.
Answer-C
29. _____ is conducted to determine whether a proposed business has sufficient management
expertise, organizational competence, and resources to successfully launch its business.
A. A marketing plan
B. Financial feasibility analysis
C. Industry/market feasibility analysis
D. Organizational feasibility analysis
Answer-D
30. Why is the executive summary perhaps the most important section of the business plan?
A. This section of the plan provides in-depth discussion of the major trends in the
industry in which the firm intends to compete.
B. This section of the plan summarizes the firm's key executives.
C. If this section of the plan fails to attract an investor's interest, he or she is unlikely
to read the remainder of the plan.
D. This section of the plan deals with the day-to-day operations of the company.
Answer-C
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